Business Services Industry

Legal Briefs: Coverage suit dismissed over inconvenient forum.(Perspectives)(Wal-Mart Stores Inc. suit, Liggett Group Inc. suit and Americans with Disabilities Act suit against McClatchy Newspapers Inc.)

Business Insurance, December, 2002

The Court of Appeals of Arkansas has upheld a lower court's dismissal of a suit brought by Wal-Mart Stores Inc. seeking business interruption damages from its insurers for loss at a retail store in another state. In December 1996, a large boulder fell from a rock face behind a Wal-Mart store in Dickson City, Pa., damaging the rear of the store.

An engineering firm and construction company told Wal-Mart that a dangerous situation existed because of unstable cracks in the rock face that could cause further damage. Because of the extent of the recommended remedial measures, Wal-Mart decided to abandon the store. In January 1997, it resumed operations at a smaller, temporary location, and in 1998, Wal-Mart opened a new, permanent location. During this period,...

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